UFCW NEGOTIATIONS UPDATE – May 1, 2019

At Stop & Shop, we are back to doing what we do best – taking great care of our customers – and we’re pleased to have fair and responsible new contracts in place for all of our store associates in Connecticut, Massachusetts and Rhode Island.

This has been a challenging period for everyone. However, together with the UFCW union locals, we were able to reach agreements that got the balance right, with strong rewards for associates plus significant, durable structural changes, particularly on health care, that will enable Stop & Shop to protect jobs, serve our customers, and compete successfully as New England’s only remaining fully-unionized large supermarket company.

As was our goal from the outset, we’re proud to have reached agreements that make our company stronger and more competitive, while ensuring that our associates continue to receive among the industry’s top pay and best benefits, with:

Higher wages for full- and part-time associates, including continued Sunday premiums;

We’re moving forward stronger than ever. Our associates are fired up, customers are returning, and our stores are getting back to full operations faster than expected. Our produce has never been fresher, Peapod deliveries are back on schedule, and we’re ready for Mother’s Day with fresh floral arrangements and plants.

We cannot thank our customers enough for their patience, confidence, and continued support, and we all look forward to continuing to provide them with the great service, selection, and value they expect and deserve.

Update: April 21, 2019

We are very pleased to announce Stop & Shop has reached fair new tentative agreements with UFCW Locals 328, 371, 919, 1445 and 1459, which represent our 31,000 associates in Massachusetts, Connecticut and Rhode Island. We’re also glad to have our associates return to work as the strike has ended.

The tentative three-year agreements, which are subject to ratification votes by members of each of the union locals, include:

Increased pay for all associates;

Continued excellent health coverage for eligible associates; and

Ongoing defined benefit pension benefits for all eligible associates.

Our associates’ top priority will be restocking our stores so we can return to taking care of our customers and communities and providing them with the service they deserve. We deeply appreciate the patience and understanding of our customers during this time, and we look forward to welcoming them back to Stop & Shop.

Update: April 20, 2019

Negotiations are continuing with the five UFCW local unions, and we remain committed to reaching a fair new agreement that has pay increases for all associates, continued health benefits for eligible associates and increased pension contributions.

We are continuing to serve our customers and communities over the holiday weekend, and Stop & Shop stores in MA, CT, and RI will be open from 8 a.m. – 12 p.m. on Easter Sunday. Please note that some stores will remain closed, and customers should utilize the Store Finder on the Stop & Shop website to confirm hours for their local store. As a reminder, Bakery, Customer Deli, and Seafood counters will not be operational, and all pharmacies and banks will be closed - as they always are on the Easter holiday.

We also wanted to share some positive news with the holiday weekend upon us. In addition to working with our regional food bank partners to donate food for the hungry, Stop & Shop has been working with children’s hospitals, rescue missions, and other local organizations to donate toys, candy, and Easter baskets to children in need.

We will continue to update you.

Update: April 19, 2019

Stop & Shop and the five UFCW local unions are continuing negotiations into the evening. We remain focused on reaching fair new agreements that provide market-leading wages, excellent health benefits for eligible associates and increased pension contributions for all of our associates.

Update: April 18, 2019

Negotiations are continuing with the five UFCW local unions. Our primary goal remains to get our associates back to work with a contract that has pay increases for all associates, continued health benefits for eligible associates and increased pension contributions. We remain focused on getting back to fully serving our customers every day.

Update: April 12, 2019

A message from Mark McGowan to our associates

This is a challenging time, but I want you to know that I and the entire Stop & Shop team remain firmly committed to getting a fair new contract in place for all of our associates in New England. Our team is standing by and remains ready to continue negotiations anytime. We hope that the UFCW local unions return to the table to reach a fair and responsible contract now.

As a 28-year veteran of Stop & Shop, I want you to know how much I care about our associates. I stand behind the comprehensive offer we have placed on the table. Our offer provides pay increases for all associates, excellent health coverage with deductibles that would not change, increased contributions to the employee pension plans and no changes in paid time off or holidays for current associates. You can see for yourself in the offer summary fact sheets we have posted below.

Importantly, the offer also maintains a responsible balance in rewarding our associates, protecting jobs and serving our customers in a dramatically changing, mostly non-union environment. Stop & Shop has been an industry and community leader for more than 100 years, and we have every intention of remaining so for many years to come.

We want to get back to bargaining now on a new contract. We all want to focus again on doing what we do best -- taking care of our customers. Our associates and the communities we serve deserve nothing less.

Update - April 11, 2019

Given that negotiations with assistance of the federal mediators are continuing, we are disappointed that the UFCW chose to order a work stoppage in an attempt to disrupt service at our stores. Stop & Shop has contingency plans in place to minimize disruption.

Stop & Shop has proposed a good and reasonable offer to our union locals that includes:

Across-the-board pay increases for all associates – no one’s pay would be cut;

Continued “Gold Level” health care benefits for eligible associates – at a fraction of what employees at other retail companies pay and with no changes to already unusually low deductibles; and

Increased company contributions to the UFCW’s defined benefit pension fund for current full- and vested part-time associates – a rare benefit in the New England food retail industry.

Additionally, this morning the company made several suggestions to the federal mediators to encourage further bargaining. The mediators gave those proposals to the Locals late in the morning. The Locals provided no counter proposals to the mediators and simply stated they were proceeding with their plans.

In contrast to the company’s proposal which is better than most recent UFCW contract settlements and responsive to heavy non-union competition, the unions proposed a contract that would increase the company’s costs. This would make our company less competitive in the mostly non-union New England food retail marketplace.

Stop & Shop remains ready and available to meet with the union locals at any time. We are committed to good faith bargaining and hope to reach new contracts as quickly as possible that both recognize and reward the great work of our associates and enable Stop & Shop to compete effectively in the rapidly changing New England grocery market.

Update: April 8, 2019

Negotiations continued last week with the five New England UFCW union locals with the support of several federal mediators. During these discussions, Stop & Shop improved its March 28 “Final Offer” and offered new, three-year collective bargaining agreements that provide overall pay and benefits better than most of our competitors and improvements for our associates. Because there have been inaccurate statements made about Stop & Shop’s positions in negotiations, we believe it is important for our customers and our associates to have access to the complete facts on Stop & Shop’s offer. That is why today we have made the offers to each of the five unions available in their entirety, as well as summaries of each offer, available by clicking on the buttons above.

These offers include:

Across-the-board pay increases for all associates – no one’s pay would be cut

Continued “Gold Level” health care benefits as defined by the federal government at substantially below-market costs for eligible associates – and no changes to current deductibles

Continued support for and increased company contributions to the UFCW’s national defined benefit pension fund for current full-and vested part-time associates – a very rare benefit in the New England retail industry; and

Generous "voluntary retirement incentive offers” for long service associates

Negotiations have been complex, largely because of factors specific to our region and industry – fierce competition from non-union retailers, new state mandates on minimum wage and paid sick leave, and increased costs related to health and retirement benefits. We believe this proposal represents a responsible balance that continues to keep Stop & Shop’s full-time associates among the highest paid in the industry while also providing pay increases and a wide range of benefits for those working full- or part-time schedules.

Our goal continues to be to reach fair new contracts as quickly as possible.

Update: March 28, 2019

Excellent, affordable health care benefits for eligible associates that qualify as federal “Gold Level” in quality, with associates’ share of the cost remaining far below what employees at most other companies pay; and

Increased company contributions to the UFCW’s national defined benefit pension fund for full- and part-time associates.

Stop & Shop remains ready and available to meet with the union locals at any time. We will continue good faith bargaining and hope to reach fair new contracts as quickly as possible that both recognize and reward the great work of our associates and enable Stop & Shop to compete effectively in the rapidly changing, mostly non-union New England grocery market.

Additionally, Stop & Shop has committed up to $2 billion to upgrade our stores over the next several years to better serve our customers and communities as we also lower prices and expand opportunities for our associates.

Update - March 21, 2019

Stop & Shop and the five New England UFCW union locals will return to negotiations on Tuesday, March 26, Wednesday, March 27 and Thursday, March 28. Stop & Shop remains committed to good faith bargaining and to reaching fair new contracts as quickly as possible. We look forward to new agreements that continue to recognize and reward the great work of our associates with competitive wages and benefits and that enable Stop & Shop to compete effectively in the rapidly changing, largely non-union New England grocery market. Stop & Shop also has committed up to $2 billion to upgrade our stores over the next several years to better serve our customers and communities as we also lower prices and expand opportunities for our associates.

Update - March 14, 2019

In the last several bargaining sessions, Stop & Shop has made a wide scope of monetary proposals - and other proposal modifications - that would improve the overall compensation package for our current associates and would, we believe, create a solid foundation for new contracts. We remain committed to continuing to provide our associates with highly competitive wages, comprehensive health care coverage and, unlike any other area food retailers, a defined benefit pension.

Although no additional dates have been scheduled, we remain available, as always, for more negotiation dates and hope to receive substantive and constructive union responses to our recent suggestions.

Update - March 9, 2019

Contract negotiations are continuing between Stop & Shop and the five New England area UFCW union locals, including two additional days of discussions this past week. Prior contracts with the union locals expired on February 23, but contract negotiations often extend beyond the expiration date.

More negotiation sessions are scheduled next week on March 13 and 14. Stop & Shop remains committed to working diligently and in good faith with the union locals to reach new agreements.

Update - February 24, 2019

We understand that the members of one of the five union locals have voted to authorize a strike, although this does not necessarily mean the union actually will initiate a strike. Negotiations will continue this week, and we are continuing to negotiate in good faith and remain committed to reaching a resolution as quickly as possible.

Full-time Stop & Shop associates are among the highest paid food retail workers in the region, and we are working hard to reach strong new contracts that will continue to provide Stop & Shop associates with competitive wages and affordable health care for eligible associates. Stop & Shop also has committed up to $2 billion to upgrade our stores over the next several years to better serve our customers and communities as we also lower prices and expand opportunities for our associates.

We are proud of our relationship with our associates and optimistic that we will be able to reach a new agreement.

Update - February 23, 2019

On February 22 and 23, Stop & Shop continued negotiations with the UFCW Local Unions that represent 31,000 Stop & Shop associates throughout Massachusetts, Rhode Island and Connecticut. The current three-year contracts expire February 23; however, negotiations will continue next week.

Stop & Shop is one of the few remaining union grocers in the New England market. Most of Stop & Shop’s primary competitors, such as Market Basket, Wegman’s, Amazon/Whole Foods, Trader Joe’s, Aldi’s and Walmart are all non-union with much lower labor costs. This week in negotiations, Stop & Shop offered proposals that would ensure full-time associates continue to be among the highest paid food retail workers in the region and would continue to provide eligible associates with a comprehensive benefit package that includes affordable health care, while allowing our company to succeed in a rapidly changing industry.

We look forward to having discussions with the unions next week and remain committed to reaching new agreements as quickly as possible.

Update - February 22, 2019

We are working hard to reach strong new contracts that ensure that Stop & Shop continues to be a great place to work, with competitive wages and affordable health care for eligible associates. Full-time Stop & Shop associates are among the highest paid food retail workers in the region. Stop & Shop has committed up to $2 billion to upgrade our stores over the next several years to better serve our customers and communities as we also lower prices and expand opportunities for our associates.

The current three-year contracts with UFCW locals in Massachusetts, Connecticut and Rhode Island expire on February 23. However, contract negotiations may extend beyond the expiration date.

We are proud of our relationship with our associates and optimistic that we will be able to reach a new agreement. We are continuing to negotiate in good faith and remain committed to reaching a resolution as quickly as possible.

Update - February 11, 2019

Negotiations for new contracts continued last week between Stop & Shop and the UFCW Local Unions that represent 31,000 Stop & Shop associates throughout Massachusetts, Rhode Island and Connecticut. Together, we made further progress on narrowing the gap on non-economic items, and, on February 8, Stop & Shop presented an offer on economic terms for discussion.

Stop & Shop’s economic proposal is built on continuing to provide competitive wages and benefits to our associates. While reflecting the rapid changes and increasing competition that are reshaping our industry, this offer continues to provide full-time associate wages and benefits that, on average, are better than what our competitors provide.

Stop & Shop is available to meet and continue negotiations in good faith. We look forward to continuing our discussions with the UFCW Locals.

Update: February 5, 2019

On January 31, 2019, Stop & Shop and the UFCW Local Unions that represent more than 31,000 associates throughout Massachusetts, Rhode Island and Connecticut concluded two weeks of bargaining for a new contract. Together, we have made initial progress on non-economic items but have not yet turned to the economic elements of a new agreement.

At Stop & Shop, we are proud to be an important part of our local communities and an excellent place to work for our associates. We provide a competitive compensation package for our associates and, in most cases, our full-time associates are paid much higher than our regional competition. We provide all eligible associates with health care benefits at a very low cost to the associates and their families. Additionally, Stop & Shop is one of the few remaining grocery retailers in this region that provide full- and part-time employees with a traditional defined benefit pension.

Remaining one of the strongest food retail employers in the region continues to be our priority as we work with the UFCW to establish a new contract for our associates.

Negotiations are expected to resume on February 6, 2019.

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